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StemCells (STEM) Prices offering of $0.30 per share to raise $8.1 M?

March 9, 2016 10:06am

The share price opened DOWN -$0.1388 or -37.01% to $0.239?

Being that the amount of shares and warrants to be sold are unspecified, the underwriters should be paying subscribers to participate in this desperate offering!

Who is dreaming of $8.1 M ... STEM or the underwriters?

STEM priced an offering of common stock, Series A Warrants and Series B Warrants with a public offering price of $0.30 for one share, a Series A Warrant to purchase 0.50 of a share of common stock and a Series B Warrant to purchase 0.75 of a share of common stock.

The Series A Warrants have an exercise price of $0.30 per share, are exercisable immediately, and will expire two years from the date of issuance.

The Series B Warrants have an exercise price of $0.42 per share, are exercisable 12 months from the date of issuance, provided STEM has sufficient authorized capital to allow all of the Series B Warrants to be exercised in full by the holders, and will expire on the fifth anniversary of the date they become exercisable.

STEM has also granted the underwriters a 45 day option to purchase up to an additional 4,000,050 shares of common stock and/or warrants to purchase up to an additional 5,000,063 shares of common stock to cover over-allotments, if any.

The Bottom Line: STEM “expects” to receive gross proceeds of approximately $8.1 M. However, the share price opened DOWN -$0.1388 or -37.01% to $0.239? The offering is expected to close on or about 3/14/16, subject to “customary” closing conditions – DOES THAT INCLUDE PRICING?

35 companies, 1 interpreter!

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